Which one of the following is a measure of stock risk? A. standard deviation of stock returns B. stock average return C. capital yield D. dividend yield E. stock price
Over the period of 1926-2011, which one of the following investment classes had the highest returns?
- Large-company stocks
- U.S. Treasury bills
- Small-company stocks 1
- Long-term corporate bonds
- Long-term government bonds
Which one of the following is a measure of stock risk
Answer :
- standard deviation of stock returns
Explanation to the above answer
The risk of a stock is measured by the variance or standard deviation of stock returns. Standard deviation is also called volatility.
2
Over the period of 1926-2011, which one of the following investment classes had the highest returns?
Answer :
- Small-company stocks
Explanation to the above answer
Over the period 1926-2005, small-company stocks produced more an average return then the average return of cent, U.S. Treasury bills and long-term corporate bonds
